One Advantage of Recruiting Sales Representatives from Within the Company

question 40

Multiple Choice

One advantage of recruiting sales representatives from within the company is that these people:

• A)Are likely to be technically acquainted with the product,and are familiar with the company's policies and philosophies.
• B)Will not require any further training.
• C)Can be paid less money than recruits from outside.
• D)Can go immediately into the field and sell.
• E)Know the market better than do recruits from other sources.

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield of government bonds from stable governments.

Market Risk Premium

This is the extra return expected by investors for holding a risky market portfolio instead of risk-free assets.

Security Market Line

A line that represents the risk versus expected return of the market; used to assess the performance of investments compared to the market.

Systematic Risk

The inherent risk associated with the overall market or economy that cannot be eliminated through diversification.